American DG Energy (ADGE) 8-K/A Consolidated Statements of Operations

Exhibit 99.1

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended December 31, 2011 and December 31, 2010

	2011			2010
Revenues
Energy revenues	$	1,435,082		$	1,298,882
Turnkey & other revenues		34,194			77,066
		1,469,276			1,375,948
Cost of sales
Fuel, maintenance and installation		1,027,806			975,850
Depreciation expense		343,078			226,674
		1,370,884			1,202,524
Gross profit		98,392			173,424
Operating expenses
General and administrative		766,593			424,484
Selling		562,916			106,518
Engineering		227,128			145,840
		1,556,637			676,842
Loss from operations		(1,458,245	)		(503,418	)
Other income (expense), net
Interest and other income		8,820			11,438
Interest expense		(286,168	)		(29,046	)
Change in fair value of warrant liability		(82,621	)		59,681
		(359,969	)		42,073
Loss before income taxes		(1,818,214	)		(461,345	)
Provision for state income taxes		17,071			(4,020	)
Consolidated net loss		(1,801,143	)		(465,365	)
Income attributable to the noncontrolling interest		30,609			(60,569	)
Net loss attributable to American DG Energy Inc.	$	(1,770,534	)	$	(525,934	)
Net loss per share - basic and diluted	$	(0.04	)	$	(0.01	)
Weighted average shares outstanding -
basic and diluted		45,879,469			44,994,322
Non-GAAP financial disclosure
Loss from operations	$	(1,458,245	)	$	(503,418	)
Depreciation expense		361,110			243,689
Stock based compensation		187,795			89,533
Adjusted EBITDA		(909,340	)		(170,196	)
Grants from rebates and incentives		182,931			22,852
Total EBITDA cash outflows	$	(726,409	)	$	(147,344	)

E-1

CONSOLIDATED STATEMENTS OF OPERATIONS

For the years ending December 31, 2011 and December 31, 2010

	2011			2010
Revenues
Energy revenues	$	5,705,418		$	5,043,744
Turnkey & other revenues		317,450			591,021
		6,022,868			5,634,765
Cost of sales
Fuel, maintenance and installation		3,827,539			3,625,404
Depreciation expense		1,265,009			867,923
		5,092,548			4,493,327
Gross profit		930,320			1,141,438
Operating expenses
General and administrative		2,384,774			1,487,040
Selling		1,496,764			602,597
Engineering		763,260			733,504
		4,644,798			2,823,141
Loss from operations		(3,714,478	)		(1,681,703	)
Other income (expense)
Interest and other income		40,234			51,385
Interest expense		(532,544	)		(125,131	)
Change in fair value of warrant liability		427,042			59,681
		(65,268	)		(14,065	)
Loss before income taxes		(3,779,746	)		(1,695,768	)
Provision for state income taxes		-			(14,730	)
Consolidated net loss		(3,779,746	)		(1,710,498	)
Income attributable to the noncontrolling interest		(4,199	)		(197,505	)
Net loss attributable to American DG Energy Inc.	$	(3,783,945	)	$	(1,908,003	)
Net loss per share - basic and diluted	$	(0.08	)	$	(0.04	)
Weighted average shares outstanding -
basic and diluted		45,705,793			43,525,374
Non-GAAP financial disclosure
Loss from operations	$	(3,714,478	)	$	(1,681,703	)
Depreciation expense		1,315,861			911,125
Stock based compensation		667,000			228,736
Adjusted EBITDA		(1,731,617	)		(541,842	)
Grants from rebates and incentives		510,069			451,603
Total EBITDA cash outflows	$	(1,221,548	)	$	(90,239	)

E-2

CONSOLIDATED STATEMENTS OF OPERATIONS

For the years ending December 31, 2011 and December 31, 2010

EuroSite Power Inc. ONLY (without American DG Energy Inc.)

	2011			2010
Revenues
Energy revenues	$	-		$	-
Turnkey & other revenues		-			-
		-			-
Cost of sales
Fuel, maintenance and installation		-			-
Depreciation expense		-			-
		-			-
Gross profit		-			-
Operating expenses
General and administrative		854,502			39,805
Selling		527,253			-
Engineering		-			-
		1,381,755			39,805
Loss from operations		(1,381,755	)		(39,805	)
Other income (expense)
Interest and other income		333			-
Interest expense		-			-
		333			-
Loss before income taxes		(1,381,422	)		(39,805	)
Provision for state income taxes		-			-
Net loss	$	(1,381,422	)	$	(39,805	)
Net loss per share - basic and diluted	$	(0.03	)	$	(0.00	)
Weighted-average shares outstanding -
basic and diluted		53,229,633			51,195,767
Non-GAAP financial disclosure
Loss from operations	$	(1,381,755	)	$	(39,805	)
Depreciation expense		-			-
Stock based compensation		474,695			-
Adjusted EBITDA		(907,060	)		(39,805	)
Grants from rebates and incentives		-			-
Total cash outflows	$	(907,060	)	$	(39,805	)

E-3

CONSOLIDATED BALANCE SHEETS

For the years ending December 31, 2011 and December 31, 2010

	2011			2010
ASSETS
Current assets:
Cash and cash equivalents	$	17,801,025		$	3,921,054
Restricted cash		-			65,790
Short-term investments		-			-
Accounts receivable, net		879,630			661,435
Unbilled revenue		18,825			117,846
Due from related party		21,140			52,432
Inventory		634,120			487,724
Prepaid and other current assets		322,276			86,089
Total current assets		19,677,016			5,392,370
Property, plant and equipment, net		14,690,117			14,362,444
Accounts receivable, long-term		82,664			17,034
Other assets, long-term		53,504			-
TOTAL ASSETS	$	34,503,301		$	19,771,848
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	520,608		$	482,917
Accrued expenses and other current liabilities		589,032			370,774
Due to related party		313,847			2,560,720
Capital lease obligations		3,365			3,365
Total current liabilities		1,426,852			3,417,776
Long-term liabilities:
Convertible debentures		19,400,000			-
Warrant liability		249,561			676,603
Capital lease obligations, long-term		3,365			6,730
Other long-term liabilities		43,052			-
Total liabilities		21,122,830			4,101,109
Stockholders’ equity:
American DG Energy Inc. shareholders’ equity:
Common stock, $0.001 par value; 100,000,000 shares authorized; 46,001,404 and 45,598,029 issued and outstanding at December 31, 2011 and 2010, respectively		46,001			45,598
Additional paid-in capital		30,399,370			28,905,660
Accumulated deficit		(17,931,058	)		(14,147,113	)
Total American DG Energy Inc. stockholders’ equity		12,514,313			14,804,145
Noncontrolling interest		866,158			866,594
Total stockholders’ equity		13,380,471			15,670,739
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	34,503,301		$	19,771,848

E-4

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ending December 31, 2011 and December 31, 2010

	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(3,783,945	)	$	(1,908,003	)
Income attributable to noncontrolling interest		4,199			197,505
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,315,861			911,125
Provision for losses on accounts receivable		110,229			57,576
Amortization of deferred financing costs		2,256			8,526
Change in fair value of warrant liability		(427,042	)		(59,681	)
Stock-based compensation		667,000			228,736
Changes in operating assets and liabilities
(Increase) decrease in:
Restricted cash		65,790			(65,790	)
Accounts receivable and unbilled revenue		(295,033	)		(188,572	)
Due from related party		31,292			193,857
Inventory		(146,396	)		(108,421	)
Prepaid and other current assets		(224,283	)		9,504
Increase (decrease) in:
Accounts payable		37,691			(257,557	)
Accrued expenses and other current liabilities		218,258			(24,274	)
Other long-term liabilities		43,052			-
Due to related party		153,127			143,189
Net cash used in operating activities		(2,227,944	)		(862,280	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(1,643,534	)		(5,771,223	)
Sale of short-term investments		-			678,921
Net cash used in investing activities		(1,643,534	)		(5,092,302	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible debentures		17,000,000			-
Proceeds from issuance of warrants		-			736,284
Proceeds from exercise of warrants		-			350,000
Proceeds from sale of common stock, net of costs		-			1,286,855
Proceeds from sale of subsidiary common stock, net of costs		1,148,401			2,226,019
Proceeds from exercise of stock options		33,838			54,775
Proceeds from related party line of credit		-			2,400,000
Convertible debenture transaction costs		(67,664	)		(21,556	)
Principal payments on capital lease obligations		(3,365	)		(3,365	)
Cancellation of restricted stock		(20	)		-
Distributions to noncontrolling interest		(359,741	)		(302,598	)
Net cash provided by financing activities		17,751,449			6,726,414
Net increase in cash and cash equivalents		13,879,971			771,832
Cash and cash equivalents, beginning of the year		3,921,054			3,149,222
Cash and cash equivalents, end of the year	$	17,801,025		$	3,921,054
Supplemental disclosures of cash flows information:
Cash paid during the year for:
Interest	$	343,750		$	114,116
Income taxes	$	91,931		$	31,329
Non-cash investing and financing activities:
Conversion of convertible debentures to common stock	$	-		$	5,320,000
Conversion of due to related party to convertible debentures	$	2,400,000		$	-
Forgiveness of related party debt in exchange for reduction in noncontrolling interest	$	-		$	124,111

E-5